Cardano Aims for $2: Top Reasons to Consider Buying ADA Now
Cardano’s [ADA] price has experienced an impressive surge in the last month, achieving triple-digit gains and breaking past the $1 milestone after a prolonged three-year downtrend, establishing its position as one of the top-performing alternative cryptocurrencies.
While prominent investors have capitalized on the recent price drop to accumulate ADA tokens, the expected strong bullish momentum is yet to materialize.
Nevertheless, the overall optimism in the market continues to sustain interest in ADA, as leading cryptocurrencies maintain their positive trajectory, and investors seek to hedge risks as Bitcoin approaches a critical psychological threshold.
Crucial Three Weeks on the Horizon for ADA
Within just 20 trading days since the surge following recent events, ADA managed to surpass the $1 level. Despite indications of a potential correction due to overextended positions, Cardano enthusiasts have managed to maintain market strength and prevent a significant downturn.
However, in the past week, the pace of growth has slowed, even as Bitcoin surpassed $100K. This slowdown indicates a degree of uncertainty among investors regarding ADA’s position in the current market, leading to a cautious approach.
Unless Bitcoin stages a substantial recovery, holding above $104K and transforming the current price range into strong support, short-term market fluctuations are likely to persist.
Looking forward, the following three weeks could see increased market activity as Q4 comes to a close and the optimism of the new year approaches.
ADA enthusiasts should seize this opportunity to benefit from any market momentum while maintaining the current price levels.
Historically, the period from December to February has witnessed significant liquidity in the Cardano market, with ADA consistently experiencing notable price movements and breaking out of consolidation during each annual cycle.
If historical patterns hold true, ADA may have the potential to exceed $2 in the near future, setting its sights on a new all-time high of $3.11 before the year ends.
Is Buying the Dip a Wise Decision?
Whether by coincidence or strategic planning, large investors seem to be adopting this approach by accumulating more than 20.31 million ADA at an average price of $1.21.
This sizable accumulation appears to have encouraged a total of 391,000 addresses, collectively holding 4.95 billion ADA tokens, all anticipating a return to $2.
However, achieving this target from the current market value will require a significant push of over 60%, presenting a considerable challenge, especially given the current market volatility, overbought RSI conditions, and potential bearish signals from MACD crossovers.
Therefore, the critical strategy here is to maintain position until these factors stabilize. Any minor divergence could potentially jeopardize ADA’s $1 milestone, a level that enthusiasts have struggled to reclaim for years.
The unwavering support of significant investors will be crucial in absorbing selling pressure from traders with weaker positions. These traders, anxious about a correction, might consider selling at breakeven if prices decline further.
For those with a long-term perspective on Cardano and are targeting a breakout at $2, seizing the current market dip offers several advantages: strong support from major investors, anticipation of year-end market trends, and most importantly, the resilience exhibited by ADA enthusiasts.
This psychological aspect plays a vital role in ensuring that the $1 milestone remains within reach and does not slip away.